What is CRO?
CRO stands for Conversion Rate Optimization, which means working to improve the rate at which visitors complete desired actions on your website.
In broad terms, CRO covers the work of increasing the conversion rate on your website. This will often mean increasing the number of sales relative to the number of visitors. But a conversion can be many things, depending on what kind of business you are and what your goal is.
At its most fundamental, a conversion covers selected events or interactions you want your visitors to carry out.
An example of what CRO can do for your business
The reason for working with CRO is simple. By increasing your conversion rate — the proportion of visitors who make a purchase — you increase your revenue and your bottom line. Without increasing the number of visitors to your website or your advertising spend.
An example of what CRO can do for your business is illustrated below:
An example of the impact of CRO
A fictional website has a conversion rate of 2%, 10,000 visitors per month and an average order value of 500 DKK.
This yields a total of 200 orders and a monthly revenue of 100,000 DKK.
By working in a data-driven and strategic way with CRO — increasing the proportion of buyers relative to visitors — the conversion rate rises to 3%.
With the new conversion rate, the number of orders is 300. The order volume and number of visitors remain constant. The new revenue, at a conversion rate of 3%, would therefore be 300×500 = 150,000 DKK per month. That is an increase in revenue of 50,000 DKK per month.
By optimising the conversion rate by just 1 percentage point — from 2% to 3% — the business will achieve an additional monthly revenue of 50,000 DKK and more than 500,000 DKK per year.
How to get started with CRO
CRO is something every business — whether you are a webshop, B2B, SaaS or something else entirely — should focus on. It will generate value across the entire business's ROI and have a positive impact on all marketing channels and traffic sources.
But how do you get started? We have written a complete, step-by-step guide to getting started with conversion rate optimisation. It consists of 7 simple steps, and below you will find tips and tricks on choosing tools, analysis and strategies.
The 7 steps to getting started with CRO are
- Define your objectives and KPIs 🎯
- Analysis: What is going wrong and when? 📊
- Brainstorm: Ideas for concrete initiatives 🧠
- Selection of initiatives 🎨
- Launch A/B split tests 🎬
- Implement initiatives permanently 📈
- Rinse and repeat ♻️
Would you like to optimise your conversion rate and increase your revenue?
Call us on 30 12 42 72 for a no-obligation chat about how we can help you optimise your website and achieve better results.
